Marketing Strategies and Analysis: Travel and Tourism Sector Report

This report provides a comprehensive analysis of marketing principles and their application within the travel and tourism sector, using Thomas Cook as a case study. It begins by defining core marketing concepts, including customer needs, market analysis, product and service offerings, customer satisfaction, and exchange processes. The report then examines the impact of the marketing environment, considering both macro (political, economic, social, and technological) and micro (customers, competitors, suppliers, and tourism systems) factors. Further, it delves into consumer motivation and demand, exploring the influence of consumer behavior, attitudes, and travel motivators. The report also analyzes market segmentation strategies, including geographic and demographic segmentation. It then highlights the importance of strategic marketing planning and marketing research, and discusses the influence of marketing on society. The report concludes by examining the product, price, place, and promotion elements of the marketing mix, with a focus on the integrated promotional campaign. The report emphasizes the importance of understanding consumer behavior and adapting marketing strategies to the changing demands of the travel and tourism industry.

MARKETING IN TRAVEL
AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core concepts of marketing for travel and tourism sector...............................................1
1.2 Impact of marketing environment on individual travel and tourism businesses and tourist
destinations.............................................................................................................................2
1.3 Factors affecting consumer motivation and demand in travel and tourism sector...........4
1.4 Principles of market segmentation and its uses in marketing planning............................5
TASK 2............................................................................................................................................6
2.1 Importance of strategic marketing planning for a selected travel and tourism business..6
2.2 Relevance of marketing research and information to managers .....................................6
2.3 Influence of marketing on society....................................................................................7
TASK 3............................................................................................................................................8
3.1 Issues in the product, price and place elements of the marketing mix............................8
3.2 Importance of service sector mix elements to the travel and tourism sector....................9
3.3 Concept of total tourism product to an individual tourism business or tourist destination9
TASK 4..........................................................................................................................................10
4.1 Integrated nature and role of the promotional mix.........................................................10
4.2 Planning and justifying of an integrated promotional campaign for a travel and tourism
business or destination..........................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel and tourism is one of the fastest growing industries in the world with
consolidation of large number of people with it. People move from one place to other for various
reasons such as personal leisure, business interest, education and learning, medical reasons and
to explore new places (Moutinho, 2011). This industry has evolved by undergoing changes in
several stages in both the supply and demand side. Demand side refers to the consumers whose
choices and preferences are changing with very fast pace and supply side includes the operators,
travel agents and other entities who are engaged in this sector to provide services and products to
their customers.
With the expansion in domain of operations, marketing has become an important
component. Selling professionals enable the organizations to reach potential customers through
effectual promotions, attractive advertisements and other methods (Hall, Timothy and Duval,
2012). Report is prepared to elucidate different components of marketing; concepts and
principles; its role and the way in which marketing and promotional mix is used in travel and
tourism sector. For the purpose, Thomas cook which is a leading tour operator of the world is
taken into account. Report throws light on the methods that are adopted by an organization in
order to promote its package for summer holidays 2016 to Morocco and Egypt.
TASK 1
1.1 Core concepts of marketing for travel and tourism sector
Marketing refers to adopting the strategies and policies to draw attention of large number
of customers to the organization to deliver maximum satisfaction to the customers by targeting in
an efficient manner. There are certain concepts and principles which are followed by the
marketers to make it effectual: Customer’s need wants and demands: Travel and tourism is the customer oriented
industry in which companies are operating with the prime focus on fulfilling the needs
and wants of customers. Realizing the significance of this sector in GDP (Gross Domestic
Product) and seeing it as a great source of income, selected organization which is Thomas
Cook seeks to know the customer’s preferences and choices (Xiang and Gretzel, 2010).
For this purpose, organization adopts methods such as conducting surveys and interactive
marketing. In surveys, with the help of questionnaire, wants are identified. On the other
1

hand, interactive marketing is a two way method in which direct interaction of the
employees of the organization is made with the customers. They address them with their
offerings; gather their opinions and views to make the services and products more
resourceful. Market: Research analysis plays a vital role in the process of marketing that are
undertaken by Thomas Cook. They seek to position their products in value oriented
market with the use of effective strategies to gain profitability (Tsiotsou and Ratten,
2010). Trend analysis enables the organization to introduce diverse products and bring
changes as per the suitability. Product and services: Customer feel satisfied with the diversity of offerings that are
available to it. Realizing the need, Thomas Cook offers range of products and services by
widening the domain of its operations. Number of packages is offered to the travellers
with so much of variety to satiate the needs of customers. Customer satisfaction: It is the fundamental element of marketing, and hence it is being
considered while processing all the business functions of the organization. Thomas cook
is recognized for delivering personalized and thoughtful services to their customers (Hall,
2013). It conducts training and development sessions to bring improvement in them and
make the experience of their customers memorable.
 Exchange process: It refers to the swapping of tangible and intangible products and
services offered by tour operators.
1.2 Impact of marketing environment on individual travel and tourism businesses and tourist
destinations
Travel and tourism business works in an integrated manner which gets influenced by the
number of factors. It affects the different elements of organizational functioning with changes in
its strategies and ways in which customers are consolidated to it.
Macro Environment Political factors: To stabilize the condition of country in various aspects, Government of
Egypt and Morocco has laid certain rules and regulation which is to be followed by all
the organizations operating in the economy (Cook and Marqua, 2014). With respect to
travel and tourism sector, there are certain norms which Thomas Cook also has to abide
2

such as; for consumer protection, employees related issues, safety and precaution for
travellers in adventure related services, health and many more. Economic factors: These situations that are prevailing in countries such as Egypt and
Morocco affect the revenue generation and profitability of businesses. Thomas Cook
group is operating in countries around the globe and its tariffs and fares of their products
and services vary from region to region. Further, changes in exchange rates and inflation
rate existing in different countries also alter the financial condition of Thomas Cook. Social factors: Fundamental factor that affects the strategic framework of Thomas cook is
the choices and preferences of the travellers and customers at Egypt and Morocco that are
linked to the organisation. Technological factors: With the advancement in technology, there has been paradigm
shift in the ways in which products and services are offered by the organization. Better
information technology has led to the improvement in the processes that are adopted by
Thomas cook (Hudson and Thal, 2013). Improved ways of communication has brought
the smooth connectivity and networking between different centres of Thomas cook in
several countries. By conducting meetings and summits at virtual platforms, senior
management discusses the issues and policies with different managers and suppliers.
Micro environment Customers: The central part of management is customers and travellers who avail the
benefits of the services provided by organization. Services and products are provided as
per their choices and requirements. Competitors: Each organization caters to create a prominent position in market by
providing outstanding services and quality products. To widen the gap with their
competitors in the market, Thomas cook provides distinguished packages and services to
their travellers by visiting at Egypt and Morocco. Suppliers: Thomas cook functions by adopting the integrated approach in which it is
linked to the number of suppliers and trading partners situated in its home country, UK as
well as Egypt and Morocco. They inculcate number of services in their packages such as
financial services, entertainment options, recreational offers, exchange offers for its
patrons (Mills and Law, 2013).
3

 Tourism system and destination: There is significant involvement of government and
other legislative bodies who showcase country's offering to the nation and world to
enhance tourism. It conducts programmes and campaign to bring awareness about the
preservation of country’s assets. Further, they take considerable amount of steps to
prevent them from damage and renovate the heritage monuments and buildings. This
increases the scope of operations of Thomas Cook in the area of introducing new
packages and services such as sightseeing at historical areas and other related facets.
1.3 Factors affecting consumer motivation and demand in travel and tourism sector
Customer's demand is influenced by number of factors that regulates in travel and
tourism sector. Each factor has significant effect on the degree of their preference to choose the
product and destination. There are wide range of products or services which are offered by
organizations such as tour operators, travel agents etc that motivates customers in different ways
(Crooks and et.al., 2011).
Consumer behaviour
Fundamental factor that affects the consumer motivation and demand in travel and
tourism sector is the behaviour of the client. It determines the way in which choices are made by
them. For the purpose, a theory is developed by Stanley Plog that is Plog's model which states
that there are two types’ of travellers on the basis of their psychographic attributes.
Psychocentric travellers are reserved in their choices and are confined to choose safe places and
prefer return trips. On the other hand, allocentric travellers are people who love to explore new
places and visit more often to different locations. They seek to travel adventurous places and are
labelled as wanderer (Evans, Stonehouse and Campbell, 2012). Egypt is the treasure trove of
spectacular places and colossal monuments. In that regards, separate packages are prepared such
as one to explore places like Giza, Saqqara, Luxor, Abu Simbel, pyramids, Valley of Kings and
other for adventurous tour at Egypt for canyoning and rock climbing; desert cycling; bouldering,
scrambling and sand boarding.
Consumer decision making
Consumer's decision making depends upon two factors; attitude/perception and travel
motivators.
4

 Attitudes/ Perception: There are individuals who take decisions about their tour and trips
as per their attitude and perception about the place. It is also influenced by their pre-
notation about the company with which they are connected. There are certain mental
impressions and preconceptions about the destinations to which people are desired to visit
and explore. If the places have favourable conditions and stable situation, then they will
attract large number of visitors to the place (Ashworth and Goodall, 2012). On the
contrary, unrest at a place will create negative perception about the same and will take the
visitors away from that place.
 Travel motivators: Tour operators and travel agencies play vital role in attracting visitors
at the place. They are the one who by offering attractive and lucrative packages to that
place make the visit enjoyable and comfortable. They suggest and guide customers about
choices to comply with their needs.
1.4 Principles of market segmentation and its uses in marketing planning
Organisations operating in travel and tourism industry aim to maximize the sales and
large revenue generation. They realises the fact that consumers are not homogeneous in nature.
There are varied ranges of choices and preferences that are hold by consumers. Prevailing of
market conditions and influences of factors in different environment leads to the development of
effectual strategies by them (Law, Qi and Buhalis, 2010). One of the most lucrative strategies is
market segmentation. It refers to the division of markets on the basis of similarities of interest of
consumers. Market is segmented by selected organisation in the following manner: Geographic segmentation: It refers to the division of market on the basis of natural
features and topography. In that context, in-spite of making a single package, Thomas
cook has prepared three types of packages to tour for Egypt and Morocco. Two
individually for countries and one as an integrated package that target to make a tour for
both the places successful.
 Demographic Segmentation: In this type of segmentation, division of packages is made
on the basis of age groups, income differences; choices such as different packages for
kids, adults, family. Further, there is the classification on the basis of budget preferences
where one is for elites and other is for economical packages (Buhalis and Crotts, 2013).
This segmentation is of great significance for the marketing planning. In that respect,
planned and systematic approach is adopted by the operators to prepare a plan and tour which is
5

referred to as the typologies. With the inculcation of set of activities, typologies are prepared by
Thomas cook as per the market segments. Adopting this process enhances the consolidation of
customers and also increases the profitability.
TASK 2
2.1 Importance of strategic marketing planning for a selected travel and tourism business
With the increased domain of the working in travel and tourism sector, competition in
market has become so fierce in nature. Turbulence in market led the organization to come and
enter with effectual strategies and policies. Organized and structured way of planning is adopted
by Thomas cook. It is processed in following series of steps: Market analysis: It is imperative for an organization which is operating in the industry to
be cognizant about prevailing market situations and trends. It is in order to prepare the
strategies accordingly. This enables them to know about the customer's current choices,
preferences, degree of competition with other organization offering similar kind of
services, market share, use of technology, availability of human resources, laws and
regulations of government and other legislation with whom a country is abide to comply
with (Sigala, Christou and Gretzel, 2012). It also includes the analysis of destinations
according to life cycle model of the tourist areas. Internal analysis: After external analysis of the market and outer environment, it is
essential for an organization such as Thomas cook to do internal analysis. This company
has done the same by using SWOT model analysis. It assesses the current situation of
organization by over-viewing its four aspects that are; strengths, weakness, possible
opportunities and threats or obstacles faced by it in growth and development.
 Strategic formulation: After the overall analysis of organization on internal and external
grounds, strategies are formulated by the senior management of Thomas cook with the
inculcation of all the components in it (Oxford, 2008). Thomas cook uses ANSOFF's
matrix to reach large number of people by promoting its products and services through
market penetration, market development, product development and diversification.
6

2.2 Relevance of marketing research and information to managers
Market research is the prerequisite for the organization to establish its prominent
position. To enhance the share in market and reach large number of people, organization adopts
strategic planning. Market research helps the organization in various ways: Organized planning: With the foremost aim of the market research, it enables the
organization such as Thomas cook to proceed in its operations in an organized and
planned way. It refers to the execution of all the operations in several departments at
different places in lucrative manner (Schmid, 2009). It helps in arranging the tasks as per
their sequence. By using planned approaches, Thomas Cooks avails certain benefits as
well. Gathering resources: When there is precise and particular market research done by
analysts and specialists in the field, it helps in creating the systematic account of
resources needed for the execution of strategies and policies. It leads to the availability of
resources in proper manner from authentic sources. Due to this, Thomas cook also come
up with the contingency planning that reduces the risk of failure to it. In case of
promotion of packages at Egypt and Morocco, Thomas cook has prepared contingency
plan.
 Relational constructs: It enables to build good relational constructs with the customers,
suppliers and other trading partners (Dolnicar, 2007). With the buildup of good
relationships with the other components, Thomas cook is able to install better technology
in processes and bring innovation in products and services which helps in increasing
productivity and profitability.
2.3 Influence of marketing on society
Along with affecting the strategic framework of the organization, Thomas Cook has the
significant impact on society in several aspects: Economic impact: Marketing is processed by several elements such as the organizations
itself like travel agents, tour operators and other firms attached to it providing customers
the ancillary services (Kazi, 2014). Along with them, there are several groups such as
Government and other legislative agencies that attract large number of tourists to the
nation and makes investment with context to tourism. This trickles down to the
improvement in the economic situation of the society by improving the facts and figures
7

related to the population. This mainly includes employment rate with the opening of new
industries, increase in exchange rate value due to foreign exchange earnings, better
inflation rate, earning of profits to the attached organizations and firms and many others
(Rizzi, 2014). Social impact: When marketing is done on different platforms such as published media,
radios, TV's and other mediums, it brings awareness among the people for the
preservation and conservation of nation's assets and prevents them from damage.
 Cultural impact: In present time, people are going away from the culture of nations
thereby marketing is done to increase the domestic and international tourism which also
enhances the knowledge and information of people about culture, values and essence of
nature (Taylor, 2011). It is executed in the form of campaigning and programs conducted
by NGO's and non profitable organizations.
TASK 3
3.1 Issues in the product, price and place elements of the marketing mix
In order to process the marketing mix, organization encounters several components such
as product, price and place. With the inculcation of all these components, marketing plan is
prepared. While considering these element organizations such as Thomas cook faces certain
issues: Product: Customer's choices and preferences are changing at a fast pace. It is fluctuating
in nature with the very frequent changes. Keeping that in consideration, Thomas Cook
offers wide range of packages in different modes of transport. It provides packages via
air, road, train and cruise (Sundbo, Orfila-Sintes and Sørensen, 2007). Along with the
traveling facilities, it provides ancillary services such as financial services, insurances,
baggage facility, airport lounges, transport facilities and many more. It includes several
services such as in accommodation, food service, entertainment, adventure and many
more. Price: Packages are prepared by Thomas Cook by factors of finances and budget into
consideration. As per the requirements and, budget, preferred services and products are
distributed among the packages. Several options of accommodation are provided to
clients such as villas, hotels, apartments, cottages, guest houses and other. Further,
8

cuisine and food choices are included in packages as per customer’s needs (Vasudevan,
2008).
 Place: In marketing mix, one of the crucial factors is place or the destination which is
chosen by the operator to provide product and services. Marketing is done differently as
per the place and its features.
3.2 Importance of service sector mix elements to the travel and tourism sector
Marketing mix is the combination of two components; product mix and service mix.
Travel and tourism is the customer oriented industry in which the prime focus of organization is
to provide quality products with outstanding services to their patrons (Willis, 2011). Service mix
encompasses some components which are considered by Thomas cook as well: People: The central part of organization is the people that are associated with it. They
play a crucial role in the marketing process. In Thomas Cook, marketers are responsible
for preparing plans and policies on the basis of which promotion is done. They adopt
attractive measures to capture the attention of potential customers around the globe. Product: While preparing the plan for the promotion of tour to Egypt and Morocco,
working of all the departments is taken into consideration. Marketing differs as per the
nature and quality of services provided. Employees are engaged in number of services
such as finance, marketing, human resource and many more. This accounts to showcase
the offerings in different manner. Process: With an aim to provide the personalized and exceptional services to the
customers, it is intended to improve the quality in each area. For that purpose, training
program and development sessions are conducted to bring more warmth and preciseness
in services (Cazcarro, Hoekstra and Chóliz, 2014). New methods are taught to serve
people. Faults are removed and along with that adaptability are brought into use with the
use of high tech equipment and advanced technology. By organizing apprenticeships and
digital training, efficiency of employees are increased to the great extent. Promotion: One of the crucial components of service mix is the interactive marketing. It
is the method adopted which is by employees who are engaged in customer service
department at Thomas Cook. They maintain direct interaction with customers and
travelers to showcase their offerings and also seek opinions and views about their
preferences and choices (Choi and Sirakaya, 2006). This method is adopted by Thomas
9

cook thereby proves to be very beneficial for them to consolidate large number of
customers with it. Moreover, it builds a trust towards organization as they come in
comfort zone with it. Place: For marketing in the organization, different places are used such as direct
communication and internet. Through direct selling, place chosen is the location of
organizations, educational institutes, corporate offices and others. At these places,
promotion is done so as to reach at the potential customers. Further, internet is effectively
leveraged such as through promoting the products at social media, connecting through
emails and other modes of digital marketing. Pricing: To satisfy the range of customers in organization, there are ranges of products
which are offered by Thomas cook. In that regard, pricing is done accordingly in different
ranges. Pricing of packages are places in the variable manner so that large number of
people can avail the benefits as per their convenience.
 Physical evidence: The services provided by them are both tangible and intangible in a
manner such as it is identified that the tangible services are provided such as in the form
of food service, adventure sports, accommodation whereas intangibles are provided in the
forms facilities such as better customer dealing, entertainment and other related.
3.3 Concept of total tourism product to an individual tourism business or tourist destination
At present, there is no industry who works in isolation. Each unit works in the integrated
manner with the inculcation of several components in it. Thomas cook adopts the model of total
tourism product method. According to this model, organization provides services to the customer
with the implementation of several other requirements by collaborating with other firms. Thomas
cook adopts this model in a planned and integrated way in which it gets combined with other
organization in vertical and horizontal manner. Vertical integration refers to the linkage to other
firms which offers similar kind of services to provide better experiences to the customers
(Cortes-Jimenez and Pulina, 2010). On the other hand, horizontal integration refers to the
collaboration to the organization by providing supplementary services such as financial services,
insurances, ticket booking, entertainment and other. Through adopting this process, Thomas
Cook work together with organizations such as TRAILFINDERS who provide services to
entertain people with adventurous sports and activities. It is processed under the supervision of
expertise and specialists. Further, linkages to airlines and other modes of transport providers
10